CADE to review the sale of Kopenhagen and Brasil Cacau to Nestlé

The Administrative Council for Economic Defense (CADE) is to review the acquisition of Grupo CRM, owner of Kopenhagen and Brasil Cacau, by Nestlé. Grupo CRM is currently owned by Dutch (95%) and Cocoa (5%) investment funds.

Nestlé is well-established in the Brazilian chocolate industry sector, focusing on manufacturing and selling products in wholesale and retail sectors. Grupo CRM produces a wide range of premium/handmade chocolate, under Kopenhagen and Brasil Cacau brands, which are sold by franchise outlets.

The companies said the transaction is "pro-competitive" and would increase the offer of products and services. According to Nestlé, the deal is to explore the premium chocolate segment in Brazil and to incorporate the Grupo CRM franchise model in over 1,000 Brazilian shops. Grupo CRM has a new opportunity to grow and be sustainable through innovation, digitalisation, and exploration of new categories and opportunities.

Time limit for merger review

According to the legislation, the merger review must take no longer than 240 days. The legal time limit is extendable for up to 90 days, upon a reasoned decision by the Tribunal, or up to 60 days, upon request by the parties.

Mergers can be reviewed as summary cases—if they are less complex, from a competition point of view—or ordinary—if they need a more in-depth analysis. The assessment of the transactions subject to a summary proceeding must be concluded in 30 days, as per Resolution no. 33/2022.